Challenger banks in £1.6bn merger talks
Two of Britain’s biggest challenger banks have confirmed they are in talks about a £1.6bn merger.
Wolverhampton-based Charter Court Financial Services and OneSavings Bank (OSB) say that they are in advanced discussions regarding a possible all-share combination of the two companies.
The deal, which would be structured as a takeover by OSB, would see Charter Court shareholders take a 45% stake in the combined group.
It is proposed that Andy Golding, currently CEO of OSB, will become CEO of the combined group.
In a statement, the companies said: “The boards of Charter Court and OSB believe that the possible combination has the potential to create material shareholder value and has a compelling strategic and financial rationale.”
They added that a deal would offer the opportunity to create a leading specialist mortgage lender in the UK with greater scale and resources to deploy on growth opportunities.
“A further announcement will be made as and when appropriate,” they added.
OSB went public in 2014, while Charter Court was listed on the London Stock Exchange in 2017. Charter Court’s shares closed on Friday at 307p, around 25% higher than when it floated.
Last November, the bank launched its fourth office building in Wolverhampton, accommodating 250 staff. The company was founded with 28 employees in one building on the Broadlands site in 2008, and now occupies four offices at the business park and has grown its headcount to nearly 650.
CCFS said its growth is driven by its planned diversification from its core activity of credit risk analysis into providing mortgages and savings accounts through its Exact Mortgage Experts, Precise Mortgages and Charter Savings Bank brands.
